Senior Manager, Independent Model Review - Risk and Compliance

• Will be responsible for leading model validation and supporting the pool of Managers from the team, and wider Bank IMR team
• Will support the coordination of model validation plans, and the communication and delivery of constructive challenge to the senior management of the insurance, pensions risk, asset management and wealth models teams
• Will contribute tangibly towards the development and maintenance of the team’s capabilities as a quantitative Centre of excellence in relation to insurance and pensions models

• Ensuring model developments are validated in accordance with the agreed IMR schedule for such models
• Ensuring that models are validated in line with IMR and function guidance
• Ensuring that issues identified are escalated and appropriate action plans established
• Provision of support, and deputation for, the Functional Head on wider initiatives
• Provision of support for relevant Group Model Oversight Forums (MOFs) and delivery of regular updates on model validation activity
• Supporting the development of skills and knowledge across the modelling teams through insightful and constructive feedback
• Supporting the development and maintenance of validation methodology
• Providing a point of contact for Global IMR teams for insurance, pensions risk, asset management and wealth model reviews as required

• Impact on the Business/Function
• Carry out independent validations for HSBC’s key insurance, pensions risk, asset management and wealth models
• Support model validation work for other areas of the Bank
• Support the Functional Head to ensure that IMR responsibilities are appropriately fulfilled as per the global model risk policy
• Help build management, regulatory, and external confidence in the models
• Typical Targets and Measures

• Models developed to robust standards and with appropriate governance and documentation
• Stronger senior management understanding and confidence in models and greater trust placed in using models in business decision-making

• Support the Global Bank in understanding model issues related to insurance, pensions, finance and wealth models
• Support relevant business stakeholders (e.g. the Group Chief Actuary, CROs, CFOs etc.), relevant model owners/developers and the relevant Group MOFs, to exercise effective model oversight
• Interaction with model owners (and other relevant model stewards) to coordinate model validations and to report and discuss key findings
• Interaction with model developers to obtain evidence as part of model validation work
• Support the interaction with Group Internal Audit on model related audits and audit issues
• Typical Targets and Measures

• Strong feedback from Functional Head and other relevant stakeholders in strength of and value added from model validations
• Positive feedback from model owners and model developers in effectiveness and pragmatism of working approach
• Positive feedback from Internal Audit on collaborative working approach and on input provided to audits

• Strong leadership of validations
• Work with Group Insurance Risk and Group Pensions Risk to ensure implementation of new model governance and validation standards
• Provide support to members of the wider Model Risk Management function
• Typical Targets and Measures

• Strong feedback from and development of more junior members of the team, and other IMR teams in the Bank as relevant
• Strong business understanding and robust implementation of model governance standards, hence reducing materiality of model issues arising

• Support in developing, maintaining, and effectively implementing, validation methodology for relevant models
• Maintain cost discipline, ensuring cost savings compared with carrying out model validations externally
• Oversight of implementation of audit recommendations impacting the IMR team
• Typical Targets and Measures

• Review methodology is simple to follow and effective in identifying key model issues
• No overdue material audit issues

• Ability to communicate complex technical modelling issues to, and deliver credible feedback to, senior stakeholders (Chief Risk Officers, Global Head of IMR for the Bank, CFOs, etc.)
• Balance resilience with pragmatism and business sense in providing effective challenge to senior management and model owners
• Strong and broad technical expertise, encompassing modelling across a broad spectrum of jurisdictions and business models
• Working in an environment of dynamic model delivery schedule – often within short timescales

• The role will be based in Hong Kong, however the jobholder may be required to travel internationally occasionally as necessary in order to work with model owners and developers to carry out model reviews
• The model validation conclusions will provide a key feed into the (initial and ongoing) model approval process, as per the requirements of the group model risk policy. The jobholder will present conclusions from model validations at the relevant Model Oversight Forums)
• The jobholder will produce validation reports with support from other members of the team, as per internal IMR guidance and standards
• Significant input into talent management and retention in the Insurance and Pensions IMR team, and implementation of best practice validation methodology

• The jobholder will have detailed knowledge and understanding of relevant regulatory requirements around model governance and review
• The jobholder will also continually reassess the operational risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new technology
• This will be achieved by ensuring all actions take account of the likelihood of operational risk occurring
• Also by addressing any areas of concern in conjunction with line management and/or the appropriate department

• The jobholder will also demonstrably adhere to internal controls and policy. This will be achieved by adherence to all relevant procedures, keeping appropriate records and, where appropriate, by the timely implementation of internal and external audit points, including issues raised by external regulators
• The jobholder will observe the Group compliance policy in carrying out their activities. The term ‘compliance’ embraces all relevant financial services laws, rules and codes with which the business has to comply
• This will be achieved by adhering to all relevant processes/procedures and by liaising with Compliance department about new business initiatives at the earliest opportunity. Also and when applicable, by ensuring adequate resources are in place and training is provided, fostering a compliance culture and optimising relations with regulators

• The Insurance, Pensions, Finance and Wealth IMR team is part of the Global IMR team, which is in turn part of the Group Risk Strategy team, which provides Risk Management services for all parts of the Bank
• The team will comprise 7 individuals: 1 Global Head, 2 Functional Heads and 4 validators. The 4 of these actuaries are based in regional IMR teams
• The Insurance, Pensions, Finance and Wealth IMR team is expected to manage multiple model validations simultaneously. The model validations will be led by each of the validators with oversight provided by the one of the functional heads

• Strong understanding of industry good practice and emerging regulations (including Solvency II and IFRS17) around modelling standards and validation
• Strong technical knowledge of insurance and pensions modelling, including liability modelling, ESGs, ALM, capital modelling and business planning
• Expertise in any of Asia-Pacific, European and Latin American regulatory and market environments desirable

• Experience of leading teams and projects
• Experience of working with and facing off to senior management
• Experience of creating validation policy and structures would be desirable
• Experience in both actuarial and accounting models would be desirable
• Experience of conducting model validations or audits of models would be desirable

• Strong communication and interpersonal skills
• Ability to form effective relationships with model developers and owners and key senior stakeholders across the Bank
• Ability to prioritise competing demands and demonstrate flexibility to meet dynamic requirements
• Developing and retaining talent, within the team and across the Bank

• Actuarial qualification equivalent to Fellowship of the Institute and Faculty of actuaries

HSBC